After playing around with it, I deduced there was nothing wrong with the laser, as it would boot backed up ps1 games, and the disc read error never came up with ps2 games. original or backed up. All I ever got with a ps2 game was a black screen after the "playstation 2" logo. Also, component mode would never work with the chip enabled. Everything would work as normal with it disabled.

I removed the chip, and everything works as normal now, but now the spinning blue orbs at the bios screen are all merged into one and do not spin. I've heard this means the PS2 is broken. It still runs games fine however. Anybody got an idea what's wrong? If anything is wrong?

Make sure that you reconnected the bios/clock battery to the motherboard inside the ps2, if you had it disconnected, if you reconnected, then go into the ps2 settings screen, and set the time on the console, and the orbs will begin to rotate again.